CSRD as a leverage for a more circular economy?

Abstract

The central research question of this paper is whether and to what extent European ESG Regulation, more specifically the Corporate Sustainability Reporting Directive of 2022 (CSRD), can contribute to circularity and therefore act as a leverage for circular economy. The CSRD introduces - as its name suggests - a duty of information for specific companies regarding sustainability. The study examines whether and to what extent such information also covers information on circular economy and whether ESG reporting pushes companies to embrace the circular economy. The answer to these questions is nuanced.

In order to achieve the aforementioned research aim, this study examined a recent European Directive on Corporate Reporting and its complementary reporting standards.. The research methodology used, is classical legal analysis of legislation, policy documents and relevant literature.